Hexion Inc. has completed the sale of its Phenolic Specialty Resin, Hexamine and European-based Forest Products Resins businesses for approximately $425 million to Black Diamond and Investindustrial.

The consideration consists of $335 million in cash and certain assumed liabilities with the remainder in future proceeds based on the performance of the business. The company expects to use the sale proceeds to invest in its business and further reduce its debt.

Commenting on the transaction, Craig Rogerson, Chairman, President and Chief Executive Officer, Hexion said, “This sale strengthens our balance sheet, while maintaining a strong specialty chemical portfolio going forward. I want to thank our associates within our Phenolic Specialty Resins, Hexamine and European-based Forest Products Resins businesses for their many contributions and wish them well going forward.”

The transaction was announced in September 2020. Credit Suisse acted as Hexion’s financial advisor, Paul, Weiss, Rifkind, Wharton & Garrison LLP as lead legal counsel, and Freshfields Bruckhaus Deringer as European counsel.

Based in Ohio, Hexion is a global leader in thermoset resins. Hexion serves the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries.